310 ch 14 production outsourcing logistics
-
Upload
gale-pooley -
Category
Documents
-
view
526 -
download
0
Transcript of 310 ch 14 production outsourcing logistics
![Page 1: 310 ch 14 production outsourcing logistics](https://reader031.fdocuments.net/reader031/viewer/2022020116/559befd81a28abd8068b46cf/html5/thumbnails/1.jpg)
International EconomicsChapter 14
Global Production, Outsourcing, and Logistics
Global Production, Outsourcing, and Logistics
Global Production, Outsourcing, and Logistics
![Page 2: 310 ch 14 production outsourcing logistics](https://reader031.fdocuments.net/reader031/viewer/2022020116/559befd81a28abd8068b46cf/html5/thumbnails/2.jpg)
![Page 3: 310 ch 14 production outsourcing logistics](https://reader031.fdocuments.net/reader031/viewer/2022020116/559befd81a28abd8068b46cf/html5/thumbnails/3.jpg)
![Page 4: 310 ch 14 production outsourcing logistics](https://reader031.fdocuments.net/reader031/viewer/2022020116/559befd81a28abd8068b46cf/html5/thumbnails/4.jpg)
one billion people
![Page 5: 310 ch 14 production outsourcing logistics](https://reader031.fdocuments.net/reader031/viewer/2022020116/559befd81a28abd8068b46cf/html5/thumbnails/5.jpg)
2008 - 500,000
1998 - 100,000
2015 - 650,000Export half
![Page 6: 310 ch 14 production outsourcing logistics](https://reader031.fdocuments.net/reader031/viewer/2022020116/559befd81a28abd8068b46cf/html5/thumbnails/6.jpg)
$1.1 Billion400,000 a yearExport half
2010Exported 200,000
![Page 7: 310 ch 14 production outsourcing logistics](https://reader031.fdocuments.net/reader031/viewer/2022020116/559befd81a28abd8068b46cf/html5/thumbnails/7.jpg)
$2,5009,375 Riyals
![Page 8: 310 ch 14 production outsourcing logistics](https://reader031.fdocuments.net/reader031/viewer/2022020116/559befd81a28abd8068b46cf/html5/thumbnails/8.jpg)
Labor cost in India is one-tenth of Japan
Sends workers to Japan for training
![Page 9: 310 ch 14 production outsourcing logistics](https://reader031.fdocuments.net/reader031/viewer/2022020116/559befd81a28abd8068b46cf/html5/thumbnails/9.jpg)
one billion people
lots of engineering graduates
no preconceptions
![Page 10: 310 ch 14 production outsourcing logistics](https://reader031.fdocuments.net/reader031/viewer/2022020116/559befd81a28abd8068b46cf/html5/thumbnails/10.jpg)
![Page 11: 310 ch 14 production outsourcing logistics](https://reader031.fdocuments.net/reader031/viewer/2022020116/559befd81a28abd8068b46cf/html5/thumbnails/11.jpg)
kaizencontinuous improvement
Just-in-Time Delivery
![Page 12: 310 ch 14 production outsourcing logistics](https://reader031.fdocuments.net/reader031/viewer/2022020116/559befd81a28abd8068b46cf/html5/thumbnails/12.jpg)
Chennai
the Detroit of India
High-QualityLow-Cost
![Page 13: 310 ch 14 production outsourcing logistics](https://reader031.fdocuments.net/reader031/viewer/2022020116/559befd81a28abd8068b46cf/html5/thumbnails/13.jpg)
WhereStrategic RoleOwn or OutsourceHow to manage the Supply ChainWho should manage
Production Questions
![Page 14: 310 ch 14 production outsourcing logistics](https://reader031.fdocuments.net/reader031/viewer/2022020116/559befd81a28abd8068b46cf/html5/thumbnails/14.jpg)
InformationSystems
LogisticsHuman
Resources
COMPANY INFRASTRUCTURE
SupportActivities
PrimaryActivities
R&DR&D ProductionProduction MarketingMarketingand Salesand Sales
CustomerCustomerServiceService
The Value Chain
![Page 15: 310 ch 14 production outsourcing logistics](https://reader031.fdocuments.net/reader031/viewer/2022020116/559befd81a28abd8068b46cf/html5/thumbnails/15.jpg)
Activities involved in creating a product
Production
Product can be a good or servicePhysical or Intellectual
![Page 16: 310 ch 14 production outsourcing logistics](https://reader031.fdocuments.net/reader031/viewer/2022020116/559befd81a28abd8068b46cf/html5/thumbnails/16.jpg)
The procurement and physical transport of things through the
supply chain
Logistics
From supplier to customer
![Page 17: 310 ch 14 production outsourcing logistics](https://reader031.fdocuments.net/reader031/viewer/2022020116/559befd81a28abd8068b46cf/html5/thumbnails/17.jpg)
Lower costs
Production and Logistics
Increase valueReliability
![Page 18: 310 ch 14 production outsourcing logistics](https://reader031.fdocuments.net/reader031/viewer/2022020116/559befd81a28abd8068b46cf/html5/thumbnails/18.jpg)
Management is about improving quality
Edward Deming in Japan
Total Quality ManagementTQM
![Page 19: 310 ch 14 production outsourcing logistics](https://reader031.fdocuments.net/reader031/viewer/2022020116/559befd81a28abd8068b46cf/html5/thumbnails/19.jpg)
Identify and remove defectsMinimize variability
Using statistics to improve quality99.99966% perfect3.4 in one million
Sigma Six
![Page 20: 310 ch 14 production outsourcing logistics](https://reader031.fdocuments.net/reader031/viewer/2022020116/559befd81a28abd8068b46cf/html5/thumbnails/20.jpg)
International Organization for Standardization
ISO 9000
![Page 21: 310 ch 14 production outsourcing logistics](https://reader031.fdocuments.net/reader031/viewer/2022020116/559befd81a28abd8068b46cf/html5/thumbnails/21.jpg)
Country FactorsTechnological Factors
Product Factors
Where to Produce?
![Page 22: 310 ch 14 production outsourcing logistics](https://reader031.fdocuments.net/reader031/viewer/2022020116/559befd81a28abd8068b46cf/html5/thumbnails/22.jpg)
Political EconomyCulture
Factor CostsTrade Barriers
Location ExternalitiesExchange Rates
Country Factors
![Page 23: 310 ch 14 production outsourcing logistics](https://reader031.fdocuments.net/reader031/viewer/2022020116/559befd81a28abd8068b46cf/html5/thumbnails/23.jpg)
Fixed costs
Minimum efficient scale
Flexible manufacturing scale
Technology Factors
![Page 24: 310 ch 14 production outsourcing logistics](https://reader031.fdocuments.net/reader031/viewer/2022020116/559befd81a28abd8068b46cf/html5/thumbnails/24.jpg)
Producing at an output level where no additional cost
reductions remain
Minimum Efficient Scale
![Page 25: 310 ch 14 production outsourcing logistics](https://reader031.fdocuments.net/reader031/viewer/2022020116/559befd81a28abd8068b46cf/html5/thumbnails/25.jpg)
Designed to improve job scheduling, reduce setup time, and improve quality control
Flexible Manufacturing Technology
- Lean Production -
![Page 26: 310 ch 14 production outsourcing logistics](https://reader031.fdocuments.net/reader031/viewer/2022020116/559befd81a28abd8068b46cf/html5/thumbnails/26.jpg)
Massive Inventories
Defects
Unable to change
Mass Production
![Page 27: 310 ch 14 production outsourcing logistics](https://reader031.fdocuments.net/reader031/viewer/2022020116/559befd81a28abd8068b46cf/html5/thumbnails/27.jpg)
Producing variety at low cost Mass Customization
Ohno Taiichi
![Page 28: 310 ch 14 production outsourcing logistics](https://reader031.fdocuments.net/reader031/viewer/2022020116/559befd81a28abd8068b46cf/html5/thumbnails/28.jpg)
1950 - 24 hours1971 - 3 minutes
Innovations
Ohno Taiichi
![Page 29: 310 ch 14 production outsourcing logistics](https://reader031.fdocuments.net/reader031/viewer/2022020116/559befd81a28abd8068b46cf/html5/thumbnails/29.jpg)
Value-to-weight ratio
Serves universal needs
Product Factors
![Page 30: 310 ch 14 production outsourcing logistics](https://reader031.fdocuments.net/reader031/viewer/2022020116/559befd81a28abd8068b46cf/html5/thumbnails/30.jpg)
CONCENTRATED DECENTRALIZED
COUNTRY
Difference in Political Economy Substantial Few
Difference in Culture Substantial Few
Difference in Factor Costs Substantial Few
Trade Barriers Few Substantial
Exchange Rates Stable Volatile
TECHNOLOGICAL
Fixed Costs High Low
Minimum Efficient Scale High Low
Flexible Manufacturing Available Not Available
PRODUCT
Value-to-Weight Ratio High Low
Serves Universal Needs Yes No